Sebi Blocks US Bid for REL Amid Acquisition Battle

India's capital market regulator Sebi has rejected the open offer by Danny Gaekwad Developments & Investments to acquire a 26% stake in Religare Enterprises due to non-compliance with regulations. The Burman family, promoters of Dabur, have launched their own offer, facing legal challenges and allegations of breaches.

The Securities and Exchange Board of India (Sebi) has dismissed an open offer from US-based Danny Gaekwad Developments & Investments to buy a 26% stake in Religare Enterprises (REL). This decision arises due to the offer's inability to comply with necessary regulatory stipulations.

In correspondence dated January 28, addressed to REL, Sebi emphasized that documents from Digvijay Laxmansinh Gaekwad were being returned, citing non-exemption per Regulation 11 of SEBI (SAST) Regulations, 2011. Sebi referenced emails and letters from Gaekwad that failed to meet the regulatory framework.

Meanwhile, the Burman family, promoters of Dabur, have initiated their own acquisition process, seeking to secure an additional 26% stake in REL. This move, despite regulatory approval, faces allegations of insider trading and board interference, contested by REL's independent directors who have sought regulatory investigation.

(With inputs from agencies.)